Dace International, Inc. v. Apple Computer, Inc.

655 N.E.2d 974, 211 Ill. Dec. 591, 275 Ill. App. 3d 234, 1995 Ill. App. LEXIS 665
CourtAppellate Court of Illinois
DecidedAugust 30, 1995
Docket1-94-1312
StatusPublished
Cited by42 cases

This text of 655 N.E.2d 974 (Dace International, Inc. v. Apple Computer, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dace International, Inc. v. Apple Computer, Inc., 655 N.E.2d 974, 211 Ill. Dec. 591, 275 Ill. App. 3d 234, 1995 Ill. App. LEXIS 665 (Ill. Ct. App. 1995).

Opinion

PRESIDING JUSTICE GREIMAN

delivered the opinion of the court;

Plaintiff Dace International, Inc. (Dace), brought a breach of contract action against defendant Apple Computer, Inc. (Apple), in the circuit court of Cook County. Apple filed a motion to dismiss under section 2—619 of the Code of Civil Procedure (735 ILCS 5/2—619 (West 1992)) based on a forum selection clause in the parties’ contract which designated California as the forum for all litigation between the parties. The trial court granted this motion to dismiss.

On appeal, Dace alleges that: (1) the forum selection clause is, as a matter of law, void as against public policy; and (2) the clause is unenforceable under the facts of this case. We reject Dace’s arguments, finding the clause at issue enforceable, and affirm the trial court.

In April 1991, Dace contracted with Apple to act as a computer sales consultant. The "Authorized Apple Education Sales Consultant 1991 Agreement” (the Agreement) allowed Dace to solicit and service professional education customers in Illinois.

In July 1991, Apple notified Dace that it was terminating the Agreement because of Dace’s substandard performance. Dace alleges that its termination breached the parties’ Agreement and that Dace had fully performed all of its duties under the Agreement.

Dace filed this breach of contract action in Illinois. Apple moved to dismiss claiming that the Agreement’s forum selection clause established Santa Clara County, California, as the site of any and all litigation between the parties.

The forum selection clause provides in part:

"(1) This Agreement shall be governed by and construed in accordance with the laws of the State of California except that body of law known as Conflicts of Law.
(2) All actions or proceedings arising directly or indirectly from this Agreement other than those for injunctive relief shall be litigated in courts located within the County of Santa Clara, California. Consultant consents to the jurisdiction thereof and agrees not to disturb such choice of forum. If Consultant is not a resident of California, Consultant waives the personal service of any and all process upon it, and consents that all such service or process may be made by certified or registered mail, return receipt requested, addressed to Consultant as set forth in this Agreement.”

The trial court enforced this clause and entered an order granting Apple’s section 2 — 619 motion to dismiss Dace’s action. In reviewing orders on motions to dismiss, we apply a de nova standard of review. Federal Insurance Co. v. St. Paul Fire & Marine Insurance Co. (1995), 271 Ill. App. 3d 1117, 649 N.E.2d 460; Toombs v. City of Champaign (1993), 245 Ill. App. 3d 580, 615 N.E.2d 50.

Dace first alleges the trial court erred in failing to recognize and apply Hlinois’ public policy disfavoring forum selection. In support of this allegation, Dace cites the recent Illinois Supreme Court decision in Williams v. Illinois State Scholarship Comm’n (1990), 139 Ill. 2d 24, 563 N.E.2d 465.

Williams was a class action suit brought by student borrowers against the Illinois State Scholarship Commission (ISSC) to enjoin defendant agency from filing collection actions in an allegedly improper venue. In 1982, ISSC began to require student borrowers to execute loan agreements which contained venue waiver clauses requiring borrowers to consent to exclusive jurisdiction in Cook County, Illinois.

Also in effect at the time was an amendment to the Illinois School Code which provided that ISSC "shall file any and all lawsuits on delinquent and defaulted student loans in the County of Cook where venue shall be deemed to be proper.” (Pub. Act 85—827, eff. January 1, 1988 (amending Ill. Rev. Stat. 1985, ch. 122, par. 30—15.12 (now 110 ILCS 947/105 (West 1992))).) The supreme court found that the statute and the policy implemented by ISSC violated defendants’ due process rights. In reaching this determination, the court applied the balancing test enunciated in Mathews v. Eldridge (1976), 424 U.S. 319, 334-35, 47 L. Ed. 2d 18, 33, 96 S. Ct. 893, 902-03, which involves a weighing of the costs and benefits of the challenged State action. Although primarily concerned with the due process implications of State action, the court also found that the forum selection clause "in the case at bar results in the contravention of the policy underlying the general venue statute, ridiculous long-distance forum abuse, and the unfair burdening of a forum not connected to the litigation.” (Emphasis added.) Williams, 139 Ill. 2d at 71-72.

The court did not, as Dace contends, recognize an independent public policy voiding forum selection clauses. Instead, the court’s decision indicates that the policy implications of Illinois’ general venue statute were the compelling factors. Moreover, the court did not find the concept or practice of forum selection objectionable. Contrary to Dace’s assertion that Williams states a general disapproval of forum selection clauses, the court’s analysis suggests that the validity of forum selection clauses is to be determined on a case-by-case basis. Proceeding on such a basis, the Williams court recognized the seeming conflict between Martin-Trigona v. Roderick (1975), 29 Ill. App. 3d 553, 331 N.E.2d 100, and Calanca v. D&S Manufacturing Co. (1987), 157 Ill. App. 3d 85, 510 N.E.2d 21.

Martin-Trigona involved a residential lease agreement containing a venue waiver provision. The agreement provided that: "Lessee further consents and waives venue or other objections to lessor instituting any action under this lease in any circuit court of Illinois.” (Martin-Trigona, 29 Ill. App. 3d at 554.) Without enunciating a test or standard for determining the validity of forum selection or venue waiver clauses generally, the court held the provision "void as against public policy.” Martin-Trigona, 29 Ill. App. 3d at 555.

Calanca involved an employment contract between an Illinois resident and a Wisconsin corporation, wherein the parties agreed that "in the event of any litigation ***, [the] proper forum for the resolution of such claim shall be the Circuit Court for Jackson County, Wisconsin.” (Calanca, 157 Ill. App. 3d at 86.) The Calanca court held that a forum selection clause in a contract is prima facie valid and should be enforced unless the opposing party shows that enforcement would be unreasonable under the circumstances. (Calanca, 157 Ill. App.

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Bluebook (online)
655 N.E.2d 974, 211 Ill. Dec. 591, 275 Ill. App. 3d 234, 1995 Ill. App. LEXIS 665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dace-international-inc-v-apple-computer-inc-illappct-1995.